PRIZM is a fully decentralized and self-regulatory concept of digital currencies. Using this cryptocurrency allows users to securely store and quickly exchange assets directly – similar to transferring money from hand to hand.
According to the developers, the project was created with the aim of creating a new approach to the architecture of financial relations. Their mission is to rebalance and honestly distribute electronic money between people from around the world and solve a problem such as the gradual centralization of cryptocurrencies.
To translate the ideas of developers into reality, several technologies were added to the cryptocurrency network – forging and paramining. The first technology is designed to cope with the problems of decentralization, weak security and the fragility of cryptocurrencies. Paramining allows you not to become attached to the exchange rate and makes it possible to enter the market with little capital. Let’s talk about them in more detail.
Forging is an alternative way to confirm transactions. The user needs to connect to the Prizm network, after which the forging process will begin. When creating a new block, 0.5% of the total amount of transactions in the block is distributed between forgers. The user’s earnings depend on the number of coins that he has on his account. To start forging, there must be at least 1000 Prizm coins in your account.
If you compare this algorithm with Proof of Work, which is used in Bitcoin, then forging has the following advantages:
- Ability to conduct more transactions. The Prizm network can conduct up to 367,200 transfers per day, which is 9 times more for the performance of the Bitcoin network;
- Transaction processing lasts less than a second, while in the Bitcoin ecosystem, they can be processed up to 20 minutes;
- High energy efficiency. The Prizm system requires hundreds of times less resources.
To start forging, the user needs to download special software and run the algorithm.
Paramining is an affiliate program that is designed according to the principle of network marketing and is designed to solve the problems of project scalability. To earn PZM, the user needs to keep a certain amount of coins on his wallet and involve new participants.
Earnings depend on the number of coins in the wallet – the more there are, the higher the interest rate for the growth of coins.
If the user actively attracts new participants to the project, then earnings increase, based on increasing factors. Their value depends on the number of PZMs on the wallets of attracted users.
Two parts of paramining can be used at the same time. It is worth noting that paramining is not a unique technology, but only a network marketing scheme adapted for the blockchain.
Advantages and disadvantages of PRIZM
This cryptocurrency has both positive and negative qualities. The advantages include:
- Thanks to the use of forging to generate blocks, the chance of an attack on the network is almost completely eliminated;
- High-quality software has been developed for customers and users;
- The network operates very quickly, new blocks are formed every minute, transactions are confirmed in less than a second;
- Translations in the system can be made with encrypted comments.
Among the disadvantages:
- To start earning coins by forging, there must be 1000 coins in your account, which is equal to a thousand dollars;
- PRIZM cannot be connected to cryptocurrency services due to the project strategy;
- The cost of coins is constantly $ 1, which is why investors cannot earn on the exchange rate.
The PRIZM ecosystem is served by PZM tokens, which can be purchased on the project platform. The peculiarity of the coins is that their price does not sink and does not increase, but is tied to one dollar.
The maximum issue is 6 billion tokens. At the moment, their number is almost 55 million units, and capitalization – 50 million dollars. Due to the fact that cryptocurrency is not traded on popular exchanges, the daily turnover is only $ 3,000.
Since its launch, the PRIZM cryptocurrency has interested many investors in the opportunity to earn money by paramining. But many experts criticize this approach of the creators and focus on the fact that the project may turn out to be a pyramid, and user money can be irretrievably lost.
PRIZM – a pyramid?
Despite the fact that officially PRIZM is an absolutely decentralized cryptocurrency, some users call it a financial pyramid, giving the following arguments:
- PZM tokens are not available on popular cryptocurrency exchanges. You can buy them only on your own platform and on the BTC-Alpha exchange;
- The main goal of the creators of the cryptocurrency is to convince investors to invest more. This is evident based on their interest rates;
- The project does not offer any product; the roadmap does not describe the development strategy.
Despite the dubious reputation, the project attracted a lot of capital, and the number of its participants is constantly increasing. If PRIZM actually turns out to be a pyramid, then only those users who competently left the project will earn.